REGISTERED NUMBER: 04012089 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 September 2025

for

Celebrity Motion Furniture Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

W M Hollis

Mrs J James

REGISTERED OFFICE:

Celebrity House

Common Road

Huthwaite

Sutton-In-Ashfield

Nottinghamshire

NG17 2JY

REGISTERED NUMBER:

04012089 (England and Wales)

AUDITORS:

Charnwood Accountants & Business Advisors LLP

Statutory Auditor

The Point

Granite Way

Mountsorrel

Loughborough

Leicestershire

LE12 7TZ

The directors present their strategic report for the year ended 30 September 2025.

The company is a wholly owned subsidiary of Hollis Group Holdings Limited.

The company's principal activities are the manufacture of upholstered furniture and its subsequent sale to the furniture retail trade in the UK. The company specialises in manufacturing upholstered furniture with inbuilt rise and reclining mechanisms supplying to both domestic and specialist retailers and the majority of its production is of such items. The directors are not aware, at the date of this report, of any likely changes in the company's activities in the following period.

REVIEW OF BUSINESS

The company's turnover decreased by 1.8% during the year to £17.3m (2024 - £17.6m) and gross margins decreased to 25.8% (2024 - 30.1%) with demand for motion furniture in particular rising recliners chairs continuing to be strong.

The results were achieved in difficult trading conditions in the post pandemic, which included the continuation of the war in Ukraine, high inflation, interest rates and tax increases all having an impact on retailer and consumer confidence.

We have maintained strong relationships with our retailers and our suppliers during the year. Celebrity the company has continued to thrive despite the continued impact of economic circumstances on the general economy. We have been very proactive to look at new innovations in our market sector, working closely with retailers to display and present our ranges in the best possible way to work for both parties and gaining market share in the riser recliner market.

The company had continued to contribute towards the settling of the CVA for its parent company Hollis Group Holdings Limited in line with the administrators requirements which resulted in the CVA being cleared during the year.

The Directors are pleased with the performance delivered this year in challenging climates and are confident in increasing market share in 2025-26.

The balance sheet in the financial statements shows that the company's financial position at the period end remains positive in order to meet the company's and group's needs.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a very price sensitive market. Competitive pressures from UK and overseas manufacturers resulting in a possible loss of business, remains the principal risk for the company. The company manages this risk by constantly reappraising its manufacturing and operational costs and by continuing to improve the quality of its products and the speed and reliability of its deliveries and service.

FINANCIAL KEY PERFORMANCE INDICATORS

Turnover has decreased by £326,114 (2024 - increase of £1,113,000) and operating profit has decreased by £89,934 (2024 - increase of £344,000). Net assets have decreased by £2,454,009 (2024 - increase of £321,683) after taking into account dividends paid of £3,100,000 (2024: £600,000).

FINANCIAL INSTRUMENTS

A summary of the company financial instruments and related disclosures affecting the financial statements are set out in the notes to the accounts. The financial risk management objectives and policies of the entity and its exposure to related risks are covered above.

FUTURE DEVELOPMENTS

The company will continue to develop its product range and consolidate its position as a leading supplier of upholstery. Investment in equipment, refining internal processes and training and development of staff will continue and it is expected that this will improve operational efficiency and profitability, resulting in a strong overall financial position going forwards.

ON BEHALF OF THE BOARD:

W M Hollis - Director

23 June 2026

The directors present their report with the financial statements of the company for the year ended 30 September 2025.

DIVIDENDS

The total distribution of dividends for the year ended 30 September 2025 will be £ 3,100,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2024 to the date of this report.

W M Hollis

Mrs J James

Other changes in directors holding office are as follows:

N C Canty - resigned 23 December 2024

J D Payne - resigned 18 July 2025

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Charnwood Accountants & Business Advisors LLP, have expressed their willingness to continue in office as auditors and will be proposed for re-appointment at the forthcoming Annual General Meeting in accordance with Section 485 & 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

W M Hollis - Director

23 June 2026

Opinion

We have audited the financial statements of Celebrity Motion Furniture Limited (the 'company') for the year ended 30 September 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain

sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the

determination of material amounts and disclosures in the Financial Statements, to perform audit procedures to help

identify instances of non-compliance with other laws and regulations that may have a material effect on the Financial

Statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the

Financial Statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs(UK).The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. As such material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment and or collusion.

We obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the Company operate in and how the Company are complying with the legal and regulatory frameworks. Focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, United Kingdom Generally Accepted Accounting Practice, pension legislation and relevant UK tax legislation.

We are not responsible for preventing irregularities. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We identified the laws and regulations applicable to the company through discussions with directors and from our commercial knowledge and experience of manufacturing of furniture;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where applicable;

and

Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

We discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the Financial Statements may be susceptible to fraud, having obtained an understanding of the effectiveness of the control environment.

The engagement partner assessed that the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with applicable laws and regulations.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by evaluating management's incentives and opportunities for manipulation of the financial statements. This included the evaluation of the risk of management override of controls. In assessing the potential risks of material misstatement, we obtained an understanding of the company's operations, including the nature of its income and expenditure together with its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. Also on the company's control environment, including the policies and procedures implemented by the company to ensure compliance with the requirements of the financial reporting framework.

Our audit procedures involved:

The evaluation of the design effectiveness of controls that the company has in place to prevent and detect fraud;

To undertake journal entry testing, with a focus on higher risk journal, such as, posted by senior management, journals with unusual attributes, journals without any descriptions, journals posted by staff not in the approved list of journals posting and closing journals posted during the preparation of the financial statements, which are material and not reoccurring or common postings which fall outside of the auditor's expectations. Together with assessing whether the judgments made in making accounting estimates, set out in Note 2, are indicative of a potential bias, in particular the carrying value of stocks, and investigated the rationale behind significant or unusual transactions identified.

In response to the risk of irregularities and non-compliance with laws and regulations our procedures included, but

were not limited to;

Agreeing financial statement disclosures to underlying supporting documentation;

Enquiring of management as to actual and potential litigation and claims against the company;

Completing a review of relevant legal and professional costs within the accounting records for any evidence of

previously un-detected or un-reported instances of non-compliance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher David Hutton FCCA (Senior Statutory Auditor)

for and on behalf of Charnwood Accountants & Business Advisors LLP

Statutory Auditor

The Point

Granite Way

Mountsorrel

Loughborough

Leicestershire

LE12 7TZ

24 June 2026

TURNOVER

4

17,308,303

17,634,417

Cost of sales

12,838,919

12,313,731

GROSS PROFIT

4,469,384

5,320,686

Distribution costs

1,204,743

1,915,569

Administrative expenses

2,377,201

2,427,743

3,581,944

4,343,312

OPERATING PROFIT

6

887,440

977,374

Interest receivable and similar income

2,062

682

889,502

978,056

Interest payable and similar expenses

7

19,612

-

PROFIT BEFORE TAXATION

869,890

978,056

Tax on profit

8

223,899

56,373

PROFIT FOR THE FINANCIAL YEAR

645,991

921,683

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

645,991

921,683

FIXED ASSETS

Tangible assets

10

165,854

64,613

CURRENT ASSETS

Stocks

11

2,006,739

2,068,389

Debtors

12

2,766,861

2,947,365

Cash at bank and in hand

45,883

19,082

4,819,483

5,034,836

CREDITORS

Amounts falling due within one year

13

4,342,687

2,429,705

NET CURRENT ASSETS

476,796

2,605,131

TOTAL ASSETS LESS CURRENT LIABILITIES

642,650

2,669,744

CREDITORS

Amounts falling due after more than one year

14

(323,158

)

-

PROVISIONS FOR LIABILITIES

19

(220,769

)

(117,012

)

NET ASSETS

98,723

2,552,732

CAPITAL AND RESERVES

Called up share capital

20

1

1

Retained earnings

21

98,722

2,552,731

SHAREHOLDERS' FUNDS

98,723

2,552,732

The financial statements were approved by the Board of Directors and authorised for issue on 23 June 2026 and were signed on its behalf by:

W M Hollis - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

1

2,231,048

2,231,049

Changes in equity

Dividends

-

(600,000

)

(600,000

)

Total comprehensive income

-

921,683

921,683

Balance at 30 September 2024

1

2,552,731

2,552,732

Changes in equity

Dividends

-

(3,100,000

)

(3,100,000

)

Total comprehensive income

-

645,991

645,991

Balance at 30 September 2025

1

98,722

98,723

1.	STATUTORY INFORMATION

Celebrity Motion Furniture Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The nature of the company’s operations and its principal activities are set out in the Strategic Report.

The financial statements are prepared in Sterling (£), which is the functional currency of the company. The financial statements are for the period of 52 weeks ending 28 September 2025 (2024: 52 weeks ending 29 September 2024).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The

Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006 and under the provision of The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The financial statements have been prepared under the historical cost convention.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed the notes below.

These policies have been consistently applied to all the years presented, unless otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

The company is a wholly owned subsidiary of Hollis Group Holdings Limited, and subsequently a qualifying

entity under FRS102 and has such applied the qualifying exemptions given above under FRS102 in respect of those disclosures.

The company has taken advantage of the exemption, under paragraph 1.12(b) of FRS 102, from preparing a

statement of cash flows, on the basis that it is a qualifying entity and its ultimate parent company, Hollis Group Holdings Limited, includes the company’s cash flows in its consolidated financial statements.

Revenue recognition

Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services to customers during the year.

Revenue is recognised when the significant risks and rewards of the goods or services provided have transferred to the buyer, the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the company.

Revenue is measured at the fair value of the consideration receivable from the sale of goods and services to third parties and takes into account trade discounts, settlement discounts and volume rebates. Revenue may include duties which the company pays as principal, but excludes amounts collected on behalf of other parties, such as value added tax or other sales taxes.

Revenue of the company comprises the following key streams:

Sale of goods

Sales of goods are recognised on sale to the customer, which is considered the point of delivery. Delivery occurs when the goods have been shipped to the location specified by the customer, the risks of obsolescence or loss have been transferred to the customer, the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed or the company has objective evidence that all criteria for acceptance have been satisfied.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Improvements to property

-

10% on cost

Plant and machinery

-

15% on cost

Fixtures and fittings

-

25% on cost, 20% on cost and 15% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

25% on cost

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit and loss account.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each

reporting period. The effect of any change is accounted for prospectively.

At each balance sheet date, the company reviews the carrying amounts of its tangible fixed assets to

determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Any impairment loss is recognised as an expense in the profit and loss account immediately.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis and includes expenditure incurred in acquiring stock, production or conversion costs, and other costs incurred in bringing them to their existing location and condition. Stocks are recognised as an expense in the period in which the related revenue is recognised.

Cost for raw materials and consumables are at the purchase cost to the company. Cost for Work in progress and finished goods includes all direct expenditure. The cost of work in progress and finished goods includes

production overheads and the attributable proportion of indirect overheads based on the normal level of activity.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price, in the ordinary course of business, less costs to complete and sell. The impairment provision is determined primarily by future demand forecasts. The write down is measured as the difference between the calculated cost of the stock and market based upon assumptions about future demand and charged to the provision for stock, which is a component of cost of sales. Any impairment loss is recognised as an expense in the profit and loss account immediately.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to/from related parties.

Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument.

Trade and other debtors

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts.

A provision for impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of debtors. The amount of the provision is determined as the difference between the asset's carrying amount and the present value of estimated future cash flows, and is recognised in the profit & loss in operating expenses.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

In preparing the financial statements of the company, transactions in currencies other than the functional

currency are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences are recognised in profit or loss in the period in which they arise.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension

plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in other creditors in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Going concern

At the time of approving the financial statements the directors have a reasonable expectation that the company has adequate resources to enable it to continue to meet its obligations as they fall due for a period of 12 months from the date of sign off, of these financial statements. The Directors have considered current bank reserves and lending facilities and prepared detailed profit and cashflow forecasts for a period of 12 months from the date of sign off of these financial transactions. Since the period end the company is trading within the facilities available to it and continues to trade profitably.

On that basis, the directors have prepared these financial statements on a going concern basis.

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the period that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The directors of the company make estimates and assumptions concerning the future of the company.

In the application of the company's accounting policies, which are described in the accounting policies , in above management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

These are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements

In preparing these financial statements, the directors did not have to make any key judgements that have a significant effect on the amounts recognised in the financial statements.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

a) Establishing useful economic lives for depreciation purposes of property, plant and equipment

Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant portion of the

total assets. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The directors regularly review these asset useful economic lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful economic lives is included in the tangible fixed asset accounting policy.

b) Stock provisioning

At each reporting date judgement is used by management to establish the net realisable value of stock. Provisions are established for net realisable value where appropriate and are made are based on facts available at the time. The level of provision required is reviewed on an on-going basis.

In arriving at an estimate for the net realisable value of stock, judgement is required in assessing their likely

value on realisation taking into account market and technological changes associated with the demand for the product lines to ensure stock is recorded in the financial statements at the lower of cost and net realisable value. The directors use their knowledge of market conditions, historical experiences and estimates of future events to assess future demand for the company’s products and achievable selling prices.

c) Provisions and accrued costs

Provisions are made for dilapidations and warranties. These provisions require management's best estimate of the costs that will be incurred based on legislative and contractual requirements as well as historical information and trends to support this.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

30.9.25

30.9.24

£

£

United Kingdom

17,165,397

17,483,292

Europe

142,906

151,125

17,308,303

17,634,417

Turnover represents the amounts derived from the provision of goods and services which fall within the

company’s ordinary activities, stated net of value added tax.

The company's principal activities are as stated in the strategic report and the company primarily operates within the geographical region of the United Kingdom as shown in the split of turnover above.

5.	EMPLOYEES AND DIRECTORS

30.9.25

30.9.24

£

£

Wages and salaries

3,260,423

3,504,347

Social security costs

343,719

300,774

Other pension costs

103,665

135,506

3,707,807

3,940,627

The average number of employees during the year was as follows:

30.9.25

30.9.24

Administration

18

23

Manufacturing

91

102

109

125

30.9.25

30.9.24

£

£

Directors' remuneration

10,034

243,927

Directors' pension contributions to money purchase schemes

2,147

35,790

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

-

3

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.9.25

30.9.24

£

£

Other operating leases

351,768

321,720

Depreciation - owned assets

34,909

76,797

Auditors' remuneration

20,000

18,000

Foreign exchange differences

(8,044

)

(25,907

)

Stock recognised as an expense

9,150,291

9,101,343

In accordance with SI 2008/489 the company has not disclosed the fees payable to the company’s auditors for ‘Other services’ as this information is included in the consolidated financial statements of Hollis Group Holdings Limited.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.9.25

30.9.24

£

£

Factoring interest

11,164

-

Loan interest

8,448

-

19,612

-

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

30.9.25

30.9.24

£

£

Current tax:

UK corporation tax

124,662

-

Under/over provision prior

year

130

-

Total current tax

124,792

-

Deferred tax

99,107

56,373

Tax on profit

223,899

56,373

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

30.9.25

30.9.24

£

£

Profit before tax

869,890

978,056

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

217,473

244,514

Effects of:

Expenses not deductible for tax purposes

1,407

1,101

Utilisation of tax losses

-

(95,992

)

Adjustments to tax charge in respect of previous periods

130

-

Research & development tax credit

-

(18,624

)

Adjustment to tax rates

4,889

-

Deferred tax asset provided at future rates

-

(74,626

)

Total tax charge

223,899

56,373

In the Spring Budget 2021 the UK government announced that they will be increasing the corporation tax rate from 19% to 25% from 1 April 2023. There has been no change to corporation tax rates for the financial year ended 30 September 2025. The UK deferred tax assets and liabilities have been calculated based on the enacted rate of 25%.

The effective tax rate differs from the UK corporation tax rate principally due to the deductibility of allowances on capital expenditure and other permanent differences arising in the period as detailed in the tax charge reconciliation.

The company expects to utilise all but a trivial amount of brought forward tax losses and is not therefore expecting to carry forward tax losses of significance.

9.

DIVIDENDS

30.9.25

30.9.24

£

£

Interim

3,100,000

600,000